How brand values impact Gen Z consumer choices

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How brand values impact Gen Z consumer choices

2 Aug 2022

Maggie Glisan

Maggie Glisan covers consumer trends and emerging markets for the Commercial Baking media group. She spent the bulk of her 15-year career as the senior food editor at Better Homes and Gardens, where she was responsible for producing, writing and editing stories and developing recipes for the monthly magazine and special interest publications. Prior to that she worked as graphic designer and assistant art director in the Food Group at Better Homes and Gardens, where she took on an increasing role in content creation and editorial development.

KANSAS CITY, MO — Environmental and sustainability practices also have a big impact on the perception of quality, which is something that’s particularly important to younger consumers. Mintel indicated that 58% of Gen Z consumers buy from brands that share — and act on— their values.

As such, Shelley Balanko, senior VP at The Hartman Group, pointed out an important value shift — one from “me” to “we” — that’s taking place. According to The Hartman Group, 30% of consumers said they purchase sustainable products because they are better for “me and my family,” citing health benefits, better taste, etc., while 70% said they did so because they are better for others like the environment, communities and workers. This indicates a complexity to conscious consumption that extends beyond what’s good for the planet.

Online grocer Hive makes it easier for consumers to find products that align with their values. Brands are assessed based on criteria it calls the “Hive Five”: ingredient integrity, carbon footprint, recyclable packaging, commitment to social good and rave worthiness. Users can also filter product searches based on dietary parameters such as vegan or sugar-free as well as attributes like non-GMO or BIPOC-owned.

Balanko suggested that when developing new products, bakeries and snack producers should think about prioritizing ingredients first, rather than making them an afterthought. That includes sourcing and production considerations.

“Companies should ask themselves, ‘Where can we make a difference in the world?’” she said. “’How can we contribute to the local economy? The community? The environment?’ Start there, then use technology and innovation to support those aims.”

Whether brands are innovating for indulgence, wellness or a little bit of both, current economic factors play a significant role in the equation. According to IRI, 40% of consumers will look for sales and deals when faced with higher prices for baked goods, but steeper costs won’t significantly curb their purchases.

However, given the growing income disparity, both the value and premium ends of the consumer spectrum should be considered for innovation.

“Inflation is a key driver impacting consumer behavior in the near-term,” said Jonna Parker, principal for IRI’s Fresh Center of Excellence. “But as it continues, we still have to do some kind of creative promotion to get folks to pick specific items. The role of price promotion is important, but even more so, the only other lever we have as marketers is innovation.”

This story has been adapted from the June 2022 New Products Annual issue of Commercial Baking. Read the full story in the digital edition here.

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